ISLAMABAD: The United States has drastically reduced its overseas development and aid programs, cutting multi-year contracts by 92%, or $54 billion, the State Department announced on Wednesday.
Following his inauguration on January 20, President Donald Trump signed an executive order freezing all US foreign aid for 90 days. During this period, the aid programs were reviewed by senior political leaders to identify areas for cuts in line with his “America First” agenda.
The review primarily focused on multi-year foreign assistance contracts awarded by the US Agency for International Development (USAID), resulting in the elimination of the vast majority of these contracts.
According to a State Department spokesperson, nearly 5,800 awards worth $54 billion were identified for elimination, marking a 92% reduction. The review also examined over 9,100 grants, valued at more than $15.9 billion, with 4,100 grants worth nearly $4.4 billion being targeted for elimination, representing a 28% cut.
“These commonsense eliminations will allow bureaus and their officers to focus on remaining programs, improve efficiencies, and align future initiatives more closely with the Administration’s America First priorities,” the spokesperson said.
Programs related to food assistance, life-saving medical treatments for diseases such as HIV and malaria, and support for countries like Haiti, Cuba, Venezuela, and Lebanon were not included in the cuts.
